Singing River Health System seeks $37.5 million loan from Jackson County

View full sizeSinging River Medical Park asked the Jackson County Board of Supervisors for a $37.5 million loan.

PASCAGOULA, Miss. -- It'll take $22 million in software alone to bring Singing River Health System into compliance with President Barack Obama's impending health care mandates, representatives told Jackson County supervisors before asking them to borrow a total of $37.5 million on behalf of the system.

During Monday's board meeting, system representatives told supervisors the largest portion of the money would go toward a sophisticated electronic medical record for patients, which would be capable of linking with other providers' records.

The American Recovery and Reinvestment Act encourages doctors and hospital systems to convert patient records to electronic format by 2014.

If the system does not go electronic, beginning in 2015 the government will begin issuing penalties, mostly in the form of reduced Medicare and Medicaid reimbursements.

Singing River Health System, which operates hospitals in Pascagoula and Ocean Springs, already has technology that allows doctors to access records and even medical scans remotely, but the new software "really takes it to another level," said Chris Anderson, chief executive officer of the health system.

"It's an actual clinical decision support system," he said, noting that it will be especially helpful in pointing out possible drug interactions for patients.

Some elderly patients are on up to 40 medications, Anderson said, and their doctors now have to manually check each drug for interactions. The new system would immediately alert doctors to the interactions, he said, which increases safety.

The software works "real-time at the bedside," he told supervisors.

SRHS representatives also noted they would receive up to $11 million in federal stimulus money to help offset the cost of the system. That money will go into the operating budget and can not be used to pay down the loan early, they said.

$100 million in debt

Mike Crews, the system's chief financial officer, said the bond issue would bring the hospital's total long-term debt to more than $100 million, up from $71.8 million currently.

The board did not take formal action on the matter but did give SRHS a nod to continue preparing the bond issue, which also includes $6 million for a new neurosciences center and $5.5 million for a chiller plant replacement project at Singing River Hospital.

The health system is expected to bring a resolution before the board at its Monday meeting.